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Are you a small business owner, freelancer, or professional earning income under a presumptive taxation scheme? Then ITR-4 Sugam might be the right return form for you. In this complete guide by ITR File India, we explain everything you need to know about filing ITR-4 for the financial year 2024-25 (Assessment Year 2025-26), including eligibility, documents required, and step-by-step filing process.
🔹 What is ITR-4 Sugam?
ITR-4 Sugam is an Income Tax Return form used by:
- Individuals,
- Hindu Undivided Families (HUFs), and
- Firms (other than LLPs)
who have income from a business or profession and are opting for the presumptive taxation scheme under Section 44AD, 44ADA, or 44AE of the Income Tax Act.
It’s a simplified return form — hence the name “Sugam” — designed to reduce compliance burden for small taxpayers.
👥 Who Can File ITR-4?
You should file ITR-4 if you satisfy all of the following:
- You are a resident individual, HUF, or a firm (non-LLP).
- Your total income for FY 2024-25 does not exceed ₹50 lakh.
- You earn income from:
- Business under Section 44AD (presumptive basis),
- Profession under Section 44ADA (like doctors, lawyers, architects, etc.),
- Goods transportation under Section 44AE, or
- Salary/pension, one house property, and other income (like interest).
❌ Who Cannot File ITR-4?
You cannot use ITR-4 if:
- Your total income exceeds ₹50 lakh.
- You have more than one house property.
- You have capital gains income.
- You earn foreign income or hold foreign assets.
- You are a Director in a company or have unlisted equity shares.
- You are a non-resident.
- You want to carry forward losses or claim relief under DTAA.
In such cases, you should use ITR-3 or other appropriate ITR forms.
🧾 Documents Required for Filing ITR-4
Although you don’t need to attach documents with the return, keep these ready:
- Aadhaar Card and PAN Card
- Bank account details (IFSC, account number)
- Form 26AS (for tax credit)
- Annual Information Statement (AIS) and TIS
- Details of turnover/gross receipts
- Details of digital transactions (if any)
- Interest certificate (from bank/post office)
- Previous year’s ITR copy (optional but helpful)
🧮 Presumptive Taxation Scheme Overview
| Section | Applicable For | Presumed Income | Audit Required? |
|---|---|---|---|
| 44AD | Small Businesses | 8% of turnover (6% if digital) | No (if turnover < ₹2 Cr) |
| 44ADA | Professionals | 50% of gross receipts | No (if < ₹50 lakh) |
| 44AE | Transport Business | Fixed income per vehicle | No (if criteria met) |
💸 Tax Slabs under Presumptive Taxation
Under ITR-4, you’re taxed on a presumed percentage of your income, not actual profits. Hence, tax is calculated directly without maintaining books of accounts.
Example:
If you earn ₹20 lakh from freelancing under Section 44ADA, then:
- Presumed income = ₹10 lakh (50% of ₹20 lakh)
- Tax = As per normal slab on ₹10 lakh
📅 Due Date for Filing ITR-4 for FY 2024-25
The due date to file ITR-4 for non-audit cases is 15th September 2025.
For businesses requiring audit, due date may extend to 31st October 2025, but they would need to file ITR-3 instead.
⚠️ Penalty for Late Filing
| Filed After | Penalty |
|---|---|
| 15th September 2025 | ₹1,000 (if income < ₹5 lakh), otherwise ₹5,000 |
🧾 How to File ITR-4 Online on Income Tax Portal – Step-by-Step
✅ Prerequisites:
- PAN linked with Aadhaar
- Active e-filing account on https://www.incometax.gov.in
- Bank account pre-validated for refund
- Access to Form 26AS and AIS (Annual Information Statement)
✅ Prerequisites:
- PAN linked with Aadhaar
- Active e-filing account on https://www.incometax.gov.in
- Bank account pre-validated for refund
- Access to Form 26AS and AIS (Annual Information Statement)
📤 Step 2: Go to File Income Tax Return
- On the Dashboard, click “e-File” > “Income Tax Return” > “File Income Tax Return”
- Select:
- Assessment Year: 2025-26
- Mode of filing: Online
- Click “Proceed”
📝 Step 3: Choose Applicable ITR Form
- You will be asked: “Are you filing under the 7 days relaxation for ITR filing?” → Select ‘No’
- System may suggest suitable form (choose ITR-4 if eligible)
- Select ITR-4 and click “Proceed with ITR-4”
🔍 Step 4: Select Reason for Filing
Choose one of the following:
- Income is above the basic exemption limit
- Filing due to 7th Proviso (e.g., foreign travel, electricity bill > ₹1 lakh, etc.)
Click “Continue”
🧮 Step 5: Fill in the ITR-4 Form Sections
The ITR-4 form is divided into multiple sections. Navigate and fill each:
➤ 1. Personal Information
- Auto-filled from PAN database. Check and update contact, Aadhaar, and bank details.
➤ 2. Gross Total Income
- Choose presumptive income section (44AD / 44ADA / 44AE)
- Enter turnover/gross receipts
- System will auto-calculate presumed income (e.g., 8% of turnover or 50% of professional receipts)
➤ 3. Total Deductions
- Declare deductions under Chapter VI-A (e.g., 80C, 80D, 80G, etc.)
➤ 4. Tax Paid
- Taxes deducted (TDS, Advance Tax) will auto-fetch from Form 26AS
- Validate and correct if needed
➤ 5. Total Tax Liability
- Portal calculates tax liability after deductions and TDS
📄 Step 6: Preview and Confirm
- Review summary of income, deductions, and taxes
- Verify that all details are accurate
- If any corrections needed, go back and edit
📥 Step 7: Submit Return and e-Verify
- Click ‘Submit’
- Choose method for e-Verification:
- Aadhaar OTP (most preferred)
- Net Banking
- EVC via Bank Account/Demat Account
- Send signed ITR-V to CPC Bengaluru (if you cannot e-verify)
🛑 Filing is incomplete without e-verification.
📃 Step 8: Download Acknowledgement (ITR-V)
After successful submission:
- Download ITR-V (Acknowledgement)
- Save a copy for your records
💡 Pro Tips:
- Always check Form 26AS and AIS/TIS before filing
- Reconcile TDS and income entries
- If income is below exemption limit but TDS deducted, you should still file to claim refund
✅ Benefits of Filing ITR-4 with ITR File India
- ✔️ Expert support for small business owners
- ✔️ JSON File Generation for e-filing
- ✔️ Fast and user-friendly interface
- ✔️ Free AIS/Form 26AS assistance
- ✔️ GST/ITR combo support (optional)
- ✔️ Option to switch regime (Old/New)
🙋♂️ FAQs on ITR-4 Sugam
Q1. Can salaried persons file ITR-4?
A. Yes, only if they have income from presumptive business/profession along with salary and income doesn’t exceed ₹50 lakh.
Q2. Do I need to maintain books of accounts?
A. No, under presumptive taxation, maintaining books is not mandatory.
Q3. Is audit mandatory under ITR-4?
A. No, unless your turnover exceeds the prescribed limit or you declare income lower than presumptive rate.
📈 Boost Your Financial Compliance – File ITR-4 Sugam with ITR File India Now!
👉 Need help? Chat with our experts now!
👉 Get started: www.itrfileindia.com (replace with your link)
